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DEFINITION of 'Federal Poverty Level-FPL'. The set minimum amount of gross income that a family needs for food, clothing, transportation, shelter and other necessities. In the United States, this level is determined by the Department of Health and Human Services. FPL varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs, such as Medicaid in the U.S., define eligibility income limits as some percentage of FPL.
Federal Safety Net. U.S. Poverty Threshold. The U.S. Poverty Threshold is the level of annual income which defines whether a person or family is in a poverty status, or simply, âin povertyâ. An income level below the threshold means the person or family is in poverty; above the threshold and they are not considered as being in poverty. The Poverty Threshold is sometimes called the Poverty Line.